Consumer sentiment in the United States has seen its first increase this year, according to a new survey. The University of Michigan’s consumer sentiment index jumped 16% in June, marking the first gain since December.
The improvement is attributed to tame inflation and a truce between the US and China on trade. However, consumers still perceive significant risks to the economy. A survey by the Conference Board also showed an increase in consumer confidence this month, after five straight declines.
While US duties remain high compared to historical levels, they have not worsened overall inflation. Prices rose just 2.4% in May compared to a year ago. Economists expect tariffs to hit harder in the coming months, but for now, they are not having a significant impact on inflation.
Consumer confidence is divided by political outlook, with Republicans feeling better about the economy under Trump than Democrats. However, sentiment has improved among supporters of both parties and independents. The Federal Reserve is expected to keep its interest rate unchanged at 4.3% when it meets next week.
Source: https://abcnews.go.com/Business/wireStory/consumer-sentiment-rises-1st-time-year-inflation-remains-122815249